The Best Stocks to Invest in 2024 Delivered 48% Outperformance—What's Next for 2025?

A curated portfolio of the best stocks to invest in 2024 has proven its mettle against broader market benchmarks. The 10 carefully selected equities generated a combined return of approximately 48% above the S&P 500, demonstrating that disciplined stock selection remains a viable strategy even in strong market environments. As we look back on 2024’s performance and consider opportunities ahead, these best stocks offer valuable lessons about what works in today’s market.

Market Context: When Professional Selection Outpaces Index Returns

The backdrop for evaluating stock performance in 2024 reveals an intriguing paradox. During years when the S&P 500 delivers robust gains—the index rose 24% in one comparable year—professional equity managers struggle to outperform. In fact, 60% of large-cap managers underperformed the index during such bullish runs. This makes the 48% outperformance margin achieved by this concentrated portfolio particularly noteworthy. It reflects not luck, but strategic positioning in companies with compelling fundamentals.

Performance Recap: How These Best Stock Picks Measured Up

The portfolio contained 10 holdings: Airbnb, Amazon, Costco Wholesale, Global-e Online, Lemonade, Lululemon Athletica, MercadoLibre, Nu Holdings, SoFi Technologies, and Visa.

Nine of the ten equities finished in positive territory by year-end 2024. Airbnb traded sideways after gaining 59% the previous year, yet it became increasingly attractive as a value proposition with shares trading at just 22 times trailing free cash flow. Amazon surged 45%, driven by artificial intelligence applications transforming its Amazon Web Services division. Costco climbed 50%, reinforcing its position as a reliable performer across varying economic cycles.

On the growth front, Lemonade delivered the most dramatic results, surging 185% after entering the year down over 90% from its peak. The insurance technology company’s progress toward profitability, bolstered by advanced AI algorithms, captured investor attention. Global-e Online advanced 34%, benefiting from its cross-border e-commerce solutions for marquee clients including Disney and LVMH. MercadoLibre, despite a 26% gain, faced headwinds from economic volatility but maintained strong profitability and growth.

The fintech sector demonstrated particular strength. SoFi Technologies climbed 57%, achieving consecutive quarters of positive net income while expanding its digital banking platform. Nu Holdings, an all-digital Brazilian bank, rose 44% through its efficient cross-selling strategy, now serving 110 million customers globally. Visa, often considered a defensive choice, gained 20% despite underperforming during a market cycle dominated by mega-cap technology stocks.

Lululemon stood as the portfolio’s sole underperformer, declining 33% due to missteps in product strategy and industry-wide weakness in premium apparel. At current valuations, however, the activewear leader trades at just 26 times earnings—a potential entry point for long-term oriented investors.

Why These Best Stocks to Invest in 2024 Succeeded

The portfolio’s outperformance came from exposure to several powerful secular trends: cloud infrastructure expansion, fintech disruption, cross-border commerce growth, and high-engagement digital platforms. Companies positioned at the intersection of these trends—particularly Amazon with AWS, and SoFi with its banking expansion—captured outsized gains.

Additionally, the group demonstrated improving profitability metrics. Companies like Lemonade transitioned from loss-making to breakeven, while SoFi achieved sustained profitability. Profitability improvements tend to support stock valuations more reliably than mere revenue growth, particularly in maturing market cycles.

Considerations for 2025 and Beyond

While this list identifies the best stocks to invest in based on 2024 performance, history demonstrates that forward-looking investment decisions require more than rear-view optimization. Market conditions will shift, some holdings will stumble, and new opportunities will emerge.

The concentration in growth and technology-adjacent businesses means the portfolio carries meaningful sector risk. Economic slowdowns could pressure fintech adoption, currency fluctuations might impact MercadoLibre’s Latin American operations, and competitive pressures remain omnipresent across e-commerce.

Building a Sustainable Approach to Stock Selection

No portfolio of ten stocks provides sufficient diversification alone. Investors implementing strategies around these stocks should round out their holdings with additional positions or broader index exposure. Incorporating dollar-cost averaging for expensive stocks like Costco, which reached fresh all-time highs during 2024, allows investors to build positions prudently.

The most durable investment approach combines quality stock selection with long-term holding periods. Rather than chasing performance each year, building a foundation of fundamentally sound businesses and holding through market cycles has historically generated superior wealth accumulation. When you focus on companies with sustainable competitive advantages, expanding addressable markets, and improving profitability trajectories, short-term volatility becomes less material to long-term returns.

These best stocks to invest in demonstrate what’s possible when rigorous analysis combines with well-executed strategy. Yet they also illustrate why diversification, risk management, and patience remain central to successful wealth building in equities.